GS: We have shifted to an overweight commodities allocation for 3 & 12 months

Analysts at Goldman Sachs published a latest report on Oil markets this Tuesday, noting that they have shifted their stance to overweight on commodities allocation for the coming months.

Key Quotes:

“Brent crude oil prices peaking at $ 59/bbl in H117 as cuts are implemented, pushing the markets into deficit in Q117, which should shift the market into backwardation by the summer.”

“Given that the expected backwardation should boost commodity index returns, we have shifted to an overweight commodities allocation for 3 and 12 months.”